90% DISCOUNTED: Cheapest gold stock ever!
In the gold mining sector, because of the INCREDIBLE CYCLICALITY and the capital-intensity of it, companies often sell assets at STEEP DISCOUNTS.
It’s not often, but I’ve seen it happen before, where at the DEPTHS OF BEARISH SENTIMENT, a company would announce that it bought a property with historical resources and existing infrastructure at a sale price of 25% or 35% of its REPLACEMENT VALUE. I’ve seen them sold for 50% off, but in my 20 years in the investment world, I've only seen them sold for a discount of more than 75% once, which happened with a company we profiled.
The record HAS BEEN BROKEN, though, because a gold/silver project in stable Chile with a historical resource (not 43-101 compliant) of 5.5M ounces of gold-equivalent was sold in May for between 90% and 96% BELOW REPLACEMENT COSTS!